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Note 13 - Income Taxes
 9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

13. Income Taxes 

 

The Company’s provision for income taxes consists of federal and state taxes, as applicable, in amounts necessary to align the Company’s year-to-date tax provision with the effective rate that it expects to achieve for the full year. Each quarter the Company updates its estimate of the annual effective tax rate and records cumulative adjustments as necessary.

 

For the three months ended September 30, 2021 and 2020, we incurred pre-tax (loss)/income of ($4.0) million and $31.6 million, respectively, and a corresponding income tax benefit/(provision) of $0.9 million and ($7.5) million, respectively.

 

For the nine months ended September 30, 2021 and 2020, we incurred a pre-tax (loss)/income of ($4.6) million and $47.3 million, respectively, and a corresponding income tax benefit/(provision) of $0.8 million and ($11.1) million, respectively.

 

The effective tax rate for the three months ended September 30, 2021 was 21.9% compared to 23.6% for the three months ended September 30, 2020. The effective tax rate for the three months ended September 30, 2021 differs from the U.S. statutory rate of 21% primarily as a result of state taxes, non-deductible executive compensation under Internal Revenue Code Section 162(m) and a non-taxable adjustment for the fair market value of the Warrant. 

 

The effective tax rate for the nine months ended September 30, 2021 was 17.7% compared to 23.4% for the nine months ended September 30, 2020. The effective tax rate for the nine months ended September 30, 2021 differs from the U.S. statutory rate of 21% primarily as a result of state taxes, non-deductible executive compensation under Internal Revenue Code Section 162(m) and a non-taxable adjustment for the fair market value of the Warrant. The effective tax rate also includes a discrete income tax provision of $0.2 million primarily related to the expiration of stock options.